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1. Bank of America, but focused solely on northern and central Indiana.

2. The Wells Fargo of Indiana.

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• Commercial Loans: Provides financing for businesses, including lines of credit, term loans, and equipment financing.
• Commercial Real Estate Loans: Offers financing for the acquisition, development, and construction of commercial properties.
• Consumer Loans: Extends credit to individuals for various personal needs, such as mortgages, home equity loans, and auto loans.
• Deposit Services: Manages a range of deposit accounts for individuals and businesses, including checking, savings, money market, and certificates of deposit.
• Wealth Advisory and Trust Services: Provides financial planning, investment management, and trust administration for individuals and businesses.

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Lakeland Financial (symbol: LKFN), through its subsidiary Lake City Bank, operates as a financial institution. As such, it does not have a few "major customer companies" in the traditional sense of a supplier-customer relationship where a significant portion of its revenue comes from a handful of corporate clients. Instead, it sells primarily to a broad base of individuals and businesses within its geographic operating area.

The company serves the following categories of customers:

• Individuals (Consumer Banking): This category includes customers seeking personal banking services such as checking and savings accounts, mortgages, home equity loans, personal loans, and other consumer credit products.
• Businesses (Commercial Banking): This encompasses a wide range of businesses, from small and medium-sized enterprises (SMEs) to larger commercial and corporate clients. Services provided include commercial loans, lines of credit, business checking and savings accounts, treasury management services, and other business-specific financial solutions.
• High-Net-Worth Individuals & Institutional Clients (Wealth Management): These clients utilize Lake City Bank's wealth management services, which include investment management, trust and estate services, financial planning, and private banking solutions for individuals, families, and institutional entities.

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• Fiserv, Inc. (FI)
• Crowe LLP

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David M. Findlay, Chairman & Chief Executive Officer

Mr. Findlay joined Lakeland Financial in September 2000. He has served as President and Chief Executive Officer from 2014-2023, President and Chief Financial Officer from 2010-2014, and Chief Financial Officer from 2000-2010. Before joining Lakeland Financial, he was the Chief Financial Officer of Quality Dining Inc., a publicly traded company. Prior to that, he served in various capacities, including Vice President in the commercial lending group, with The Northern Trust Company in Chicago, Illinois, from 1984 to 1995. He began his career in banking at Northern Trust without an accounting or finance background.

Lisa M. O'Neill, Executive Vice President and Chief Financial Officer

Ms. O'Neill has held her current position since April 2014. Prior to joining Lakeland Financial, she served as Chief Financial Officer of Bank First National Corporation from 2007 to 2014. She was also the Controller of Private Bancorp, Inc. from 1999 to 2006 and worked with Arthur Andersen in its financial institutions group audit practice from 1989 to 1999.

Kristin L. Pruitt, Director and President

Ms. Pruitt has been the Director and President of Lakeland Financial since 2023. She previously served as Chief Administrative Officer and Executive Vice President from 2017 to 2023, and Senior Vice President and General Counsel within the company. Before joining Lake City Bank in 2008, she was Assistant General Counsel and Chief Compliance Officer for 1st Source Bank.

Eric H. Ottinger, Executive Vice President and Chief Commercial Banking Officer

Mr. Ottinger has held this position since August 2011. He joined Lake City Bank in April 1999 as Vice President, Commercial Loan Officer, and was promoted to Commercial East Regional Manager in April 2002 and head of the Wealth Advisory Group in April 2009. From 1993-1999, Mr. Ottinger was a commercial lending officer at another bank.

Thomas A. Hiatt, Former Independent Director

Mr. Hiatt served as an Independent Director at Lakeland Financial Corp. from 2007 to 2021. He is a co-founder and Managing Director of Centerfield Capital Partners, an Indianapolis-based private equity firm that provides growth and business expansion capital to privately held companies in the central United States. Centerfield Capital is one of the largest institutionally backed providers of private growth capital based in Indiana and the state's largest Small Business Investment Company (SBIC). He is also a founder of Grameen America, Inc.

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Key Risks to Lakeland Financial (LKFN)

Lakeland Financial Corporation (symbol: LKFN) faces several key risks inherent to the banking industry and its operating environment. These risks can significantly impact its financial performance and operational stability.

1. Changes in Economic Conditions and Interest Rates: Lakeland Financial's performance is highly sensitive to fluctuations in general economic and business conditions, particularly within its primary markets in Northern and Central Indiana. Factors such as inflation, labor market conditions, and geopolitical developments can adversely affect the company's financial performance. Changes in the Federal Reserve's monetary policy, especially interest rate adjustments, can directly impact Lakeland Financial's net interest income, the value of its investment securities, loan demand, and deposit costs.
2. Credit Risk and Loan Losses: As a lending institution, Lakeland Financial is inherently exposed to credit risk. Ineffective management of this risk can lead to increased nonperforming loans and necessitate higher provisions for credit losses, directly impacting profitability. The company's significant exposure to commercial and industrial loans, as well as commercial real estate loans, adds particular vulnerability to economic downturns and declines in real estate values.
3. Competitive Landscape and Regulatory Environment: The banking sector is intensely competitive, with Lakeland Financial vying for market share against traditional banks and emerging financial technology (fintech) companies. To maintain its competitive position, the company must continuously innovate and adapt to evolving customer preferences and technological advancements. Furthermore, Lakeland Financial operates within a highly regulated environment. Changes in banking laws or regulations can significantly impact its operations, lending practices, capital structure, and overall profitability, as these regulations are primarily designed to protect depositors and the banking system rather than shareholders.

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The increasing market penetration and sophistication of digital-first banks (neobanks and challenger banks) that offer lower-cost, more user-friendly, and technology-driven banking experiences are a clear emerging threat. These entities compete directly for deposits and lending, particularly among younger demographics and those prioritizing digital convenience over physical branches, challenging the traditional branch-heavy and overhead-laden business model of regional banks like Lakeland Financial.

Furthermore, the expansion of non-bank financial technology (FinTech) companies and major technology firms ("Big Tech") into traditional banking services represents another significant emerging threat. These companies leverage technology, vast customer bases, and data analytics to offer competitive products in areas such as payments, small business lending, and high-yield savings accounts, directly eroding market share and revenue opportunities that historically belonged to conventional banks.

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Lakeland Financial Corporation (symbol: LKFN) operates primarily in Northern and Central Indiana, US. Its main products and services include commercial and consumer banking, and wealth management.

The addressable market size for Commercial Banking in Indiana is $14.4 billion in 2025.

Specific market sizes for wealth management and retail banking services in Indiana were not available.

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Lakeland Financial (LKFN) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Consistent Loan and Deposit Growth: Management anticipates continued growth in both loans and deposits. The company's long-standing strategy emphasizes balance sheet expansion by originating loans and funding them with core deposits within its Northern and Central Indiana communities. In 2025, average loans and deposits each grew by 4% year-over-year, demonstrating the effectiveness of this approach.
2. Strategic Branch Expansion: Lakeland Financial is expanding its physical presence, particularly in the Indianapolis market. The opening of its 55th branch in Westfield, Indiana, and broader expansion in Indianapolis are expected to support ongoing growth in customer relationships and market share.
3. Expansion of Commercial Banking, Treasury Management, and Wealth Advisory Services: The company is placing significant emphasis on growing its fee-based business lines. There has been notable relationship growth in commercial banking, treasury management services, and wealth advisory. Specifically, wealth advisory fees have seen increases of 5% and 17% in various periods, while treasury management fees grew by 5%. Management is focused on driving continued growth in these areas.
4. Net Interest Income Expansion through Asset-Sensitive Balance Sheet Management: Lakeland Financial has experienced healthy expansion in its net interest margin, contributing to significant growth in net interest income, which rose 13% year-over-year in 2025. The company's asset-sensitive balance sheet is positioned to maintain a neutral interest rate risk profile, with expectations for deposit costs to decrease as the Federal Funds Rate declines, further supporting net interest income.

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Share Repurchases

• On April 8, 2025, Lakeland Financial's Board reauthorized and extended its share repurchase program through April 30, 2027, with the authority to repurchase up to $30 million of common stock, and the full amount remains available.
• Under a buyback plan announced on April 25, 2023, the company completed the repurchase of 30,300 shares for $1.69 million by October 29, 2025.
• Net equity share repurchases (purchases minus issuances) amounted to approximately $10.43 million in 2020, $0.44 million in 2021, $0.36 million in 2022, $0.17 million in 2023, and $0.20 million in 2024.

Share Issuance

• Lakeland Financial offers a Dividend Reinvestment and Stock Purchase Plan, enabling shareholders to reinvest dividends and make optional cash payments to acquire additional shares, leading to minor share issuances.
• No significant share issuances for capital raising or strategic purposes were reported over the last 3-5 years, as net equity share changes were negative, indicating that repurchases outweighed any issuances.

Inbound Investments

• No information is available regarding large investments made in Lakeland Financial by third-parties, such as strategic partners or private equity firms, over the last 3-5 years.

Outbound Investments

• No significant strategic investments in other companies by Lakeland Financial have been identified over the last 3-5 years. Investment activities reflected in cash flow statements primarily represent typical operations for a financial institution rather than strategic acquisitions of other businesses.

Capital Expenditures

• Capital expenditures were approximately $5.06 million in 2020, $6.16 million in 2021, $4.82 million in 2022, $5.98 million in 2023, and $8.62 million in 2024.
• In 2024, the company acquired a 36,000 square-foot building in Downtown Warsaw for transformation into an Innovation and Technology Center.
• Lake City Bank, a subsidiary, announced a $12 million investment in this Innovation and Technology Center in September 2025, with a primary focus on delivering technology-driven financial services.